What is a Bitcoin mining pool reward system?

A Bitcoin mining pool reward system is a way for miners to share their processing power over a network, and to then split the reward equally, according to the amount of work they contributed to the probability of finding a block.

The most common reward system used by mining pools is the Pay Per Share (PPS) system. This system requires miners to submit valid shares of work to the pool. Each time a block is found, the miners in the pool who submitted valid shares are rewarded with a portion of the pool’s block reward, proportional to the number of shares they submitted.

A second reward system is known as the Pay Per Last N Shares (PPLNS) system. In this system, miners are rewarded according to the total amount of shares they contributed to the pool during the last N shares. The more shares contributed, the higher the reward.

Another reward system is the proportional reward system. In this system, miners are rewarded proportionally to their contribution to the pool’s hash rate. The higher the contribution, the higher the reward.

Most mining pools offer a combination of these reward systems, allowing miners to select the system that best suits their needs. By using a mining pool, miners can increase their chances of earning rewards, while also reducing their risk of mining solo.